Corixa Reports Fourth Quarter and Year-End Results
Monday February 24, 7:02 am ET
Results Meet 2002 Earnings Guidance
SEATTLE--(BUSINESS WIRE)--Feb. 24, 2003--Corixa Corporation (Nasdaq:CRXA - News), a developer of immunotherapeutic products for cancer, autoimmune diseases and infectious diseases, today announced results for the fourth quarter and year ended December 31, 2002.
For the fourth quarter of 2002, Corixa reported total revenue of $9.4 million compared with total revenue of $14.9 million for the fourth quarter of 2001. Net loss applicable to common stockholders for the fourth quarter of 2002 was $19.7, compared to $34.1 million for the fourth quarter of 2001. Diluted net loss per common share for the fourth quarter of 2002 was $0.40 compared with diluted net loss per common share of $0.83 for the fourth quarter of 2001. Excluding acquisition-related charges, such as intangible and deferred compensation amortization, net loss applicable to common stockholders and diluted net loss per common share for the fourth quarter of 2002 were $19.1 million and $0.39, respectively, compared with net loss applicable to common stockholders and diluted net loss per common share of $18.1 million and $0.44, respectively for the fourth quarter of 2001.
For fiscal year 2002, Corixa's total revenue was $48.7 million, compared to total revenue of $58.1 million for fiscal year 2001. Net loss applicable to common stockholders was $208.2 million in fiscal year 2002, compared with $149.8 million for fiscal year 2001. The change in the net loss compared with a year ago was primarily due to the impairment of goodwill in the first quarter of 2002 partially offset by decreased operating expenses and intangible asset amortization. Diluted net loss per common share for 2002 was $4.67 compared to diluted net loss per common share of $3.66 for 2001. Excluding acquisition-related charges, such as intangible and deferred compensation amortization and restructuring charges related to Corixa's South San Francisco operations, net loss applicable to common stockholders and diluted net loss per common share for fiscal year 2002 were $41.8 million and $0.94, respectively, compared with net loss applicable to common stockholders and diluted net loss per common share of $75.1 million and $1.83, respectively for fiscal year 2001.
The decrease in revenue for the fourth quarter of 2002 compared with the prior year period was primarily due to the expiration of the research phase of our vaccine development collaborative agreement with GlaxoSmithKline (GSK), the expiration of certain collaborative agreements with Japan Tobacco and The Infectious Disease Research Institute (IDRI) and a decline in revenue from Organon.
As of December 31, 2002, Corixa had $116.8 million in cash, cash equivalents and investments. Corixa also continues to hold a $75 million equity line of credit from BNY Capital Markets, a subsidiary of the Bank of New York. Draws under the credit line totaled $2.6 million at December 31, 2002. Corixa expects its quarterly revenues to continue to vary as it enters into new agreements, existing agreements expire or are terminated, it reaches future research and development milestones and it receives license and research development payments under existing and new agreements.
"Corixa achieved a number of significant clinical, financial and regulatory milestones in 2002 that improved the company's long-term outlook," said Steven Gillis, Ph.D., chairman and chief executive officer of Corixa. "Importantly, we received a positive response from the FDA's Oncologic Drugs Advisory Committee to our presentation of Bexxar therapy data in December, setting the stage for approval of the product, which Corixa and GSK hope to achieve by early May 2003. We also initiated and extended several collaborations that produced immediate gains as well as promise for return long-term as the projects mature. Our cash position remains strong, allowing us to selectively expand our clinical development efforts and make important infrastructure investments."
Conference Call
Corixa's earnings conference call and webcast will take place on February 24, 2003 at 5:00 p.m. ET/2:00 p.m. PT. Webcast participants can sign up at the Investors page of Corixa's web site (http://www.corixa.com/default.asp?pid=invest). Individuals who are unable to participate in the live conference call can access a recorded rebroadcast by going to the Investors page of Corixa's web site or by dialing 888/203-1112 (domestic) or 719/457-0820 (international), passcode 451026. The call will be rebroadcast until 11:30 p.m. ET, February 27th.
About Corixa
Corixa is a developer of immunotherapeutics with a commitment to treating and preventing autoimmune diseases, cancer and infectious diseases by understanding and directing the immune system. Corixa is focused on immunotherapeutic products and has a broad technology platform enabling both fully integrated vaccine design and the use of its separate, proprietary product components on a stand alone basis. Corixa currently has multiple programs in clinical development, including several product candidates that have advanced to and through late stage clinical trials.
The company partners with numerous developers and marketers of pharmaceuticals, targeting products that are Powered by Corixa(TM) technology with the goal of making its potential products available to patients around the world. Corixa was founded in 1994 and is headquartered in Seattle, with additional operations in Hamilton, Mont., and South San Francisco. For more information, please visit Corixa's Web site at www.corixa.com.
Corixa Forward-Looking Statements
Except for the historical information presented, certain matters discussed in this press release are forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. They are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Factors that could affect Corixa's actual results include, but are not limited to, the failure of the FDA to approve BEXXAR for commercial sale, the failure of our collaboration to deliver the expected long-term gains, and our inability to access the funds potentially available under our equity line of credit due to the limitations of this facility, as well as the "Important Factors That May Affect Our Business, Our Results of Operations and Our Stock Price," described in Corixa's Quarterly Report on Form 10-Q for the quarter ended September 30, 2002, copies of which are available from Corixa's investor relations department. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.
Corixa Corporation
Consolidated Statement of Operations
(In thousands except per share data)
Three months ended Twelve months ended
December 31, December 31,
-------------------------------------------------
2002 2001 2002 2001
-------------------------------------------------
Revenue:
Collaborative
agreements $8,745 $14,150 $46,134 $55,128
Government grants 665 741 2,604 2,937
-------------------------------------------------
Total revenue 9,410 14,891 48,738 58,065
Operating expenses:
Research and
development 23,605 30,467 98,359 139,873
Sales, general and
administrative 5,710 6,128 22,249 22,650
Intangible asset
amortization 110 14,013 439 56,084
Goodwill impairment - - 161,060 -
-------------------------------------------------
Total operating
expenses 29,425 50,608 282,107 218,607
Loss from operations (20,015) (35,717) (233,369) (160,542)
Interest income 908 1,433 4,287 9,349
Interest expense (560) (447) (2,275) (2,295)
Other income 208 486 23,958 5,451
-------------------------------------------------
Net loss (19,459) (34,245) (207,399) (148,037)
Preferred stock
dividend (237) 145 (767) (1,730)
-------------------------------------------------
Net loss applicable
to common
stockholders $(19,696) $(34,100) $(208,166) $(149,767)
=================================================
Basic and diluted net
loss per common
share $(0.40) $(0.83) $(4.67) $(3.66)
=================================================
Shares used in
computation of basic
net loss per
common share 49,407 41,311 44,611 40,961
=================================================
December 31,
2002 2001
------------------------
Balance Sheet Data:
Cash, cash equivalents
and securities available-for-sale $116,757 $118,723
Working capital 55,792 41,824
Total assets 196,106 367,382
Long-term obligations
less current portion 6,920 27,657
Accumulated deficit (1,110,641) (903,242)
Total stockholders' equity 128,392 281,765
Three months ended Twelve months ended
December 31, December 31,
-------------------------------------------------
2002 2001 2002 2001
-------------------------------------------------
Reconciliation of net
loss to net loss
excluding acquisition
related charges:
Net loss applicable
to common
stockholders $(19,696) $(34,100) $(208,166) $(149,767)
Goodwill impairment - - 161,060 -
Intangible asset
amortization 495 14,398 1,980 57,625
Deferred
compensation
amortization 84 1,612 1,495 14,648
Other charges - - 1,866 2,355
-------------------------------------------------
Net loss excluding
acquisition related
charges $(19,117) $(18,090) $(41,765) $(75,139)
=================================================
Basic and diluted net
loss per share
excluding
acquisition
related charges $(0.39) $(0.44) $(0.94) $(1.83)
=================================================
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Contact:
Corixa Corporation
Jim DeNike, 206/754-5716
denike@corixa.com
or
Waggener Edstrom Bioscience
Jenny Moede, 503/443-7000
jmoede@wagged.com
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Source: Corixa Corporation |
